DISCOs incur Rs171 billion losses in Q1 as inefficiency, theft and weak recoveries persist

Government-owned power distribution companies (DISCOs) posted Rs171 billion in losses during the first quarter of FY26 (July–September 2025), driven by inefficiency, electricity theft and weak recoveries.

According to official documents, of the total losses, Rs87 billion stemmed from inefficiency and theft, while another Rs84 billion resulted from low bill recoveries. Although the losses remain significant, they are Rs68 billion lower compared to the Rs239 billion reported in the same period last year.

The documents reveal that in July–September 2024, DISCOs recorded Rs113 billion in losses linked to inefficiency and theft and Rs126 billion from poor recoveries. The Power Division noted that losses persisted through the first quarter but have declined on a year-on-year basis.

For full-year performance, DISCOs posted Rs397 billion in losses during FY25, compared to Rs591 billion in FY24 — a reduction of Rs194 billion. These losses, including under-recoveries, continue to add to the power sector’s circular debt, which remains one of the government’s major fiscal challenges.